SONY LOSSES, especially PS3 – New & Improved Analysis - End Mar 2008

[bumidan]

Ooops, forgot to post the numbers:

If you suddenly "tweak" and change some of those numbers, then all the other numbers change, quite dramatically for most numbers that other people comment or spew out.

Let's look at this example:
PS2 software gets $5 profit because PS2 is so profitable.
PS2 hardware gets $20 profit because it's so old and cheap now.

Now you may think that $2 to $5 for PS2 software is not that much different, the same for PS2 hardware profit of $20 from $10.

If we keep everything else the same from the original analysis, this is how the numbers will turn out:

PSP HW Loss FY Mar 2005 = $1,238(*) million or a LOSS of $417(*) per console

With these numbers, it doesn't even make any sense any more.

Now let's still move on with the same assumptions:

PS3 Hardware (Research) Loss FY Mar 2006 = $1.377(*) Billion Loss
PS3 Hardware Loss FY Mar 2007 = $3.395(*) Billion Loss
PS3 Hardware Loss FY Mar 2008 = $2.657(*) Billion Loss

Total PS3 hardware/research loss = $7.429(*) Billion Loss

Now you can see that a "small" change in your assumptions, though still somewhat reasonable can have a dramatic effect. From $2 and $10 for PS2 to $5 and $20 profits for PS2, you can see that PSP now lost a ridiculous amount of money per console on launch and added an additional $1.4(*) Billion loss to the PS3.

Those losses would be more if we use, as some people have suggested, a higher amount for PS3 and PSP software profits as well.

Just a reminder for people to show that there are HUGE implications just changing some numbers around.